Underwriter's are killing sales the day before closing, lienholder's charging for extensions in dreadful ways.
So today file comes out of underwriting and they say they want a pest report and 2 minor repairs. This is a conventional sale, "As Is" and now we will not close.
Meanwhile, BOA took out provision for 2% CC that was promised to the buyer, he will now have to do the work, and all for the extension signed 2 weeks ago.
The new "Buy Back" policies are making underwriters scared silly. I have never seen them so stringent on conventional loans.
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Ugh, underwriters. Nothing worse than an underwriter who doesn't know real estate 101. I recently had one wherein the underwriter was requesting the original foreclosure paperwork in order to determine "the type of foreclosure". The underwriter was concerned that the actual seller, title holder, was in fact the foreclosing entity and that the right of redemption had in fact passed. The Judgment of Foreclosure sale had been confirmed by the court 13 or 14 months prior, public record. Twelve month right of redemption was passed in any event. I indicated that the title commitment in his file was all he needed. That wasn't good enough. After supplying the original foreclosure action judgment and doing a little leg work on Google to supply to the undewriter with the State laws, he waived these ridiculous conditions. This of course took 2 or 3 days of educating the processer and the underwriter on real estate 101 and a whole lot of my time. Everyting I told them is available on public record, yet they would have killed the deal. Underwriters should have to be licensed and take continuing education since they play such a large role in real estate, just sayin.....
Got news today that the lienholder did not change the closing costs to the buyer. The buyer's lender read this wrong. If an underwriter doesn't get it then who will?
Hi Theresa,
It's crazy out there, we are in a different world of loan closings right now. I'm experiencing the same issues.